Cash or Finance?
Registered User
Joined: Jun 2007
Posts: 590
From: Chicago
Rep Power: 70
Wow this is a lot of information here. Let me clear up my options before many of you recommend stuff that doesnt make sense for my situation. First off, I will prob only buy a used 07, since thats in my realistic budget (=<90k). Also, yes we can earn more then 6% ROI/ROE, ofcourse there is a give or take built in there. And no I cannot personally afford to pay cash outright, this year, for this vehicle.
Also, I do believe you can expense out (pre-tax) a car if it used for business purposes, which I can do in my case. We are in hotels, and I believe I can deduct part of the interest as an expense, (but only the percentage it is used for business). That is what I will mostly likely do, ofcourse after speaking to my accountant.
Now with used car financing, I have excellent credit, as does my father who is also my business partner. I know if he were to buy the car in his name, he'd get top teir financing, just we haven't really shopped for financing lately, except for we bought a CPO BMW with .9% financing, but that was a special. If used car financing is not available I can look into personally loans (depending on the terms), or worst comes to worse have my father pay for the car, and I pay him back as if he were the bank. But, those two options may be not worth buying the car.
Thoughts? Has anyone gotten financing for a reasonable rate for an 07 997tt? Is that kinda money still out there?
Also, I do believe you can expense out (pre-tax) a car if it used for business purposes, which I can do in my case. We are in hotels, and I believe I can deduct part of the interest as an expense, (but only the percentage it is used for business). That is what I will mostly likely do, ofcourse after speaking to my accountant.
Now with used car financing, I have excellent credit, as does my father who is also my business partner. I know if he were to buy the car in his name, he'd get top teir financing, just we haven't really shopped for financing lately, except for we bought a CPO BMW with .9% financing, but that was a special. If used car financing is not available I can look into personally loans (depending on the terms), or worst comes to worse have my father pay for the car, and I pay him back as if he were the bank. But, those two options may be not worth buying the car.
Thoughts? Has anyone gotten financing for a reasonable rate for an 07 997tt? Is that kinda money still out there?
All kidding aside, that is your best bet. Make a couple phone calls, you'll find out why high end financing is dead for the time being. It is the same thing with home loans. I can get you 400k financing all day, bump it to a Jumbo and you are screwed.
Thread Starter
|
Registered User
Joined: Jul 2008
Posts: 690
From: NYC
Rep Power: 46
I do not own my own home. And prob wont have the chance to settle into one until alteast 1-2 years from now considering I will be travelling quite a bit for my business. Looking at 5 days in DC, 1 day in Newark, DE or Northern PA (6 day work week).
Edit and yeah home equity loans are graet for people who need cash right now, and can afford the higher payment.
Edit and yeah home equity loans are graet for people who need cash right now, and can afford the higher payment.
Last edited by CJPatel; Feb 24, 2009 at 02:56 PM.
Registered User
Joined: May 2007
Posts: 1,945
From: Pittsburgh Area
Rep Power: 171
Agree totally and I always write the check but also understand not everybody is fortunate enough to be able to do just write the check.
Registered User
Joined: Jul 2006
Posts: 970
From: Brooklyn, NY
Rep Power: 65
You can absolutely get good rates on used car financing. My dad just picked up a CaymanS and me and my brother offered to split it with him as a birthday gift, so he put half down and we financed the rest. We got a great rate and the few % that you will be paying in interest get canceled out by inflation over the course of 3 years.
If you feel that your business is secure I would say totally go for the finance, you don't tie up your money in a depreciating asset, you get to enjoy a wonderful car, and with the economy how it is now you can get a much better rate with a great credit history than you would have 6-8 months ago.
And you're doing the right thing going used, these cars are built to last and there's no point in getting hit with that new car depreciation. I think this is the last new car I get, from now on I'll just start looking at old used cars and wait for the awesome deals.
That or I'll drive this damned thing forever I love it so much =)
If you feel that your business is secure I would say totally go for the finance, you don't tie up your money in a depreciating asset, you get to enjoy a wonderful car, and with the economy how it is now you can get a much better rate with a great credit history than you would have 6-8 months ago.
And you're doing the right thing going used, these cars are built to last and there's no point in getting hit with that new car depreciation. I think this is the last new car I get, from now on I'll just start looking at old used cars and wait for the awesome deals.
That or I'll drive this damned thing forever I love it so much =)
Thread Starter
|
Registered User
Joined: Jul 2008
Posts: 690
From: NYC
Rep Power: 46
You can absolutely get good rates on used car financing. My dad just picked up a CaymanS and me and my brother offered to split it with him as a birthday gift, so he put half down and we financed the rest. We got a great rate and the few % that you will be paying in interest get canceled out by inflation over the course of 3 years.
If you feel that your business is secure I would say totally go for the finance, you don't tie up your money in a depreciating asset, you get to enjoy a wonderful car, and with the economy how it is now you can get a much better rate with a great credit history than you would have 6-8 months ago.
And you're doing the right thing going used, these cars are built to last and there's no point in getting hit with that new car depreciation. I think this is the last new car I get, from now on I'll just start looking at old used cars and wait for the awesome deals.
That or I'll drive this damned thing forever I love it so much =)
If you feel that your business is secure I would say totally go for the finance, you don't tie up your money in a depreciating asset, you get to enjoy a wonderful car, and with the economy how it is now you can get a much better rate with a great credit history than you would have 6-8 months ago.
And you're doing the right thing going used, these cars are built to last and there's no point in getting hit with that new car depreciation. I think this is the last new car I get, from now on I'll just start looking at old used cars and wait for the awesome deals.
That or I'll drive this damned thing forever I love it so much =)
Edit: And I must say thanks for an excellent write up!
+1 on that, we financed 100% on my dads CPO'd BMW (not my M3) with .9% financing. Its like getting free money today and having to pay it back over 3 years.
Last edited by CJPatel; Feb 25, 2009 at 07:35 AM.
Registered User
Joined: Jan 2009
Posts: 200
From: Massachusetts
Rep Power: 30
Holly crap, that's great. I thought mine a 4.125% was good
Registered User
Joined: Jun 2007
Posts: 590
From: Chicago
Rep Power: 70
You can absolutely get good rates on used car financing. My dad just picked up a CaymanS and me and my brother offered to split it with him as a birthday gift, so he put half down and we financed the rest. We got a great rate and the few % that you will be paying in interest get canceled out by inflation over the course of 3 years.
If you feel that your business is secure I would say totally go for the finance, you don't tie up your money in a depreciating asset, you get to enjoy a wonderful car, and with the economy how it is now you can get a much better rate with a great credit history than you would have 6-8 months ago.
And you're doing the right thing going used, these cars are built to last and there's no point in getting hit with that new car depreciation. I think this is the last new car I get, from now on I'll just start looking at old used cars and wait for the awesome deals.
That or I'll drive this damned thing forever I love it so much =)
If you feel that your business is secure I would say totally go for the finance, you don't tie up your money in a depreciating asset, you get to enjoy a wonderful car, and with the economy how it is now you can get a much better rate with a great credit history than you would have 6-8 months ago.
And you're doing the right thing going used, these cars are built to last and there's no point in getting hit with that new car depreciation. I think this is the last new car I get, from now on I'll just start looking at old used cars and wait for the awesome deals.
That or I'll drive this damned thing forever I love it so much =)
Thread Starter
|
Registered User
Joined: Jul 2008
Posts: 690
From: NYC
Rep Power: 46
Explain why that is significant please.
Not that I am interested in leasing at this point, nor am I interested in a new car, but what sort of incentives do they have?
Thanks
Thanks
Registered User
Joined: Jun 2007
Posts: 590
From: Chicago
Rep Power: 70
I do not see financing as an option when a good credit score is required to pony up a 50% deposit. No Thanks, I'll pony up the other 50%.